What is the consolidated total equity of parent company

Assignment Help Accounting Basics
Reference no: EM133014977

Question - Parent Company's shareholders' equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Parent acquires 25% of Subsidiary Company's ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000. Parent acquired significant influence over Subsidiary as a result of acquisition. After three months, Parent purchases another 55% of Subsidiary's ordinary share for cash payment of P1,100,000. On this date, Subsidiary reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000. At the acquisition date, net income reported by Subsidiary for three-month ended amounted to P500,000. The fair value of 20% NCI is P360,000. NCI is valued using the proportionate basis. Parent also paid the following: P25,000 for broker's fee; P20,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. Immediately after the business combinations, what is the consolidated total equity of Parent Company?

Reference no: EM133014977

Questions Cloud

What is the balance of the allowance for loan impairment : On July 1, 2020, XYZ Company borrowed 2,500,000 from BPI, with 12% interest. What is the balance of the allowance for loan impairment
Find the amount that would have to be in your account : At time t = 1 you have $3200 in your account. Find the amount that would have to be in your account at time t = 1/2
What is the economic order quantity : Problem - In a hardware house the demand for a commonly used bolt is 500 units per month. What is the economic order quantity
How much is the capital credited to the partners : Cherry invests an amount of cash for 25% interest in profits, losses, and capital to each partner? How much is the capital credited to the partners
What is the consolidated total equity of parent company : Parent Company's shareholders' equity as of December 31, 2019 is P2,030,000. What is the consolidated total equity of Parent Company
What do you mean by Business Information System : What do you mean by Business Information System? Explain what role does accounting play in Business information Systems and how
Calculate the new machine internal rate of return : The machine, which has a ten-year life, sells for $144,000 and would cost $16,000 per year to operate. Calculate the new machine internal rate of return
Discuss how msa has transformed : Discuss how MSA has transformed or revolutionised the operations of the organisation. Identify and analyse at least three business or organisational reasons
Discuss any three contracts related to contract of exchange : Briefly discuss the differences between Islamic banks and conventional banks. Discuss any 3 contracts related to the contract of exchange

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd